National Stock Exchange has directed its members, including stockbrokers, to discontinue the sale of digital gold on their platforms by September 10. In a letter dated August 3, the Sebi had informed the National Stock Exchange (NSE) to direct its members, including stockbrokers, to discontinue the buying and selling of digital gold by Sept 10.
Sebi said that certain members are providing a platform to their clients for buying and selling digital gold. The regulator, through a letter dated August 3, informed the exchange that the said activity is in contravention of Securities Contracts (Regulation) Rules (SCRR), 1957, and the members should refrain from undertaking any such activities.
The SCRR rules restrict all members from engaging, either as principal or employee, in any business, other than that of securities or commodity derivatives, except as a broker or agent, not involving any personal financial liability. Accordingly, NSE directed members not to carry out such activity and comply with the regulatory requirements at all times. "Members, currently engaging in the activity, shall cease to undertake all activities in this regard, within one month from the date of this circular during which necessary communications, regarding the discontinuation, shall be made to the respective clients," NSE said.